A suppliers happy by buying materials from them. Competitors

A stakeholder is a person or group of people that are
interested in a business and its behaviours. There are two types of
stakeholder, internal and external. An internal stakeholder is someone who
works within the business and therefore is interested in its behaviours e.g. an
employee. An external stakeholder is someone who doesn’t work within a business
and is interested in how the business behaves e.g. a customer.

Business one: Nike

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Owners – Nikes owners are stakeholders in the company. They
are internal stakeholders so the business would have to communicate through
internal form of communication. The most common way the owners would
communicate is email. This is because they have to contact both other owners
and those that are below, and email allows horizontal and vertical
communication to occur. Owners can make the business more profitable by the
business decisions they make. The business keeps the owners happy by being run
smoothly and bringing in profits

Customers – The customers such as footballers who need to
buy football boots are stakeholders in Nike as they are interested in the price
that Nike values its goods. They are external stakeholders so they don’t affect
the way the business runs but are affected by it. Nike communicates with the
customers via written communication, by showing the price of its goods, either
in store or on its website. This is the most effective way of communicating as
it allows the business to communicate with all the customers. Customers are an
important stakeholder because they buy the firms product and keep the firm
running. Nike can keep consumers happy by keeping prices low and selling high
quality products

Suppliers – the suppliers such as shoemakers are external
stakeholders in Nike. This is because they are only influenced by Nike profits,
and cannot make decisions on how the business operates. They are interested in Nike
because if Nike does not do well, then the supplier would lose a big customer. Nike
communicates with its suppliers by emails and financial documents. This is the
best way for Nike to communicate with its suppliers because it allows the
supplier to know what is going on with Nike and it allows Nike to understand
what is going on with its supplier. Suppliers are important as they provide Nike
with the resources they need for it to run. Nike keeps suppliers happy by
buying materials from them.

Competitors – Nike competitors such as Adidas are external
stakeholders in the business because they want to know how much the business is
charging for items. This is so the competitors can charge a similar price for a
similar product and attract customers to their business instead. Nike
communicate with their competitors via written communication on catalogues and
websites. The business should keep a good relationship with its competitors as
it allows both businesses to develop new products and generate the most profit
while keeping demand high and prices low.

Employees – employees such as managers are internal
stakeholders in Nike. This is because they work for the business and are
influenced by its decisions. Employees are important to Nike as if they are not
kept satisfied; they will not sell its goods and will cost the business a huge
amount of money. Nike communicates with its employees through different forms
of horizontal and vertical communication. In addition, employees communicate
with customers via different forms of communication, both non-verbally i.e.
body language and verbally i.e. promoting Nike goods. Employees are a
stakeholder that Nike should keep happy because they sell the product and if
they do not sell, then Nike does not make any profits.  Nike keeps employees happy by treating them
fairly and paying them well.  

Government – The government and legal bodies such as the
health and safety executive are external stakeholders in Nike. This is because they
are interested in how Nike runs and ensures that it operates legally. They
communicate with the Government via official documents such as certificate of
corporation. The Government is kept happy by Nike as long as Nike keeps the
official documentation and they operate legally. Nike should keep the
Government happy as if the Government are not satisfied with how Nike runs, they
can shut Nike down.

Business two: International Committee of The Red Cross

Owners – The owners of International Committee of The Red
Cross are internal stakeholders so the business would have to communicate
through internal forms of communication. The most common way the owners would
communicate is email. This is because they have to contact both other owners
and those that are below, and email allows horizontal and vertical
communication to occur. International Committee of The Red Cross owners are
important because they make business decisions that affect all stakeholders.
The business keeps the owners happy by being run smoothly and bringing in
profits.

Customers – Customers of International Committee of the Red
Cross such as electricians are stakeholders because they are influenced by the
way International Committee of The Red Cross price their goods. They are
external stakeholders so they don’t affect the way the business runs but are
affected by it. International Committee of The Red Cross communicates with the
customers via written communication, by showing the price of its goods, either
in store, on its website or in its catalogue. This is the most effective way of
communicating as it allows International Committee of The Red Cross to
communicate with all the customers at once. Customers are an important
stakeholder because they buy the firms product and keep the firm running. International
Committee of The Red Cross can keep consumers happy by having high quality
products at an affordable price.

Suppliers – the suppliers to International Committee of The
Red Cross such as Dewalt, who supply tools to International Committee of The
Red Cross, are external stakeholders. They are interested in International
Committee of The Red Cross because if International Committee of The Red Cross does
not do well, then the supplier would lose a big customer. International
Committee of The Red Cross communicates with its suppliers by emails and
financial documents. This is the best way for International Committee of The Red
Cross to communicate with its suppliers because it allows the supplier to know
what is going on with International Committee of The Red Cross and it allows International
Committee of The Red Cross to understand what is going on with its supplier.
Suppliers are important as they provide International Committee of The Red
Cross with the resources they need for International Committee of The Red Cross
to operate. International Committee of The Red Cross keeps suppliers happy by
buying materials from them.

Competitors – competitors to International Committee of The
Red Cross such as Toolstation are external stakeholders in the business because
they want to know how much the business is charging for items. This is so the
competitors can charge a similar price for a similar product and attract
customers to their business instead. International Committee of The Red Cross
communicate with their competitors via written communication on catalogues and
websites. The business should keep a good relationship with its competitors as
it allows both businesses to develop new products and generate the most profit
while keeping demand high and prices low.

Employees – employees such as store staff are internal
stakeholders in International Committee of The Red Cross. This is because they
work for the business and are influenced by its decisions. Employees are
important to International Committee of The Red Cross as if they aren’t kept
satisfied, they will not sell its goods and will cost International Committee
of The Red Cross a huge amount of money. International Committee of The Red
Cross communicates with its employees through different forms of horizontal and
vertical communication. Also, employees communicate with customers via
different forms of communication, both non-verbally i.e. body language and
verbally i.e. promoting International Committee of The Red Cross’s goods.
Employees are a stakeholder that International Committee of The Red Cross
should keep happy because they sell the product and if they don’t sell, then International
Committee of The Red Cross doesn’t make any profits. International Committee of
The Red Cross keeps employees happy by treating them fairly and paying them
well. 

Government – The government and legal bodies such as the
health and safety executive are external stakeholders in International
Committee of The Red Cross. This is because they are interested in how International
Committee of The Red Cross runs and ensures that it operates within the law.
They communicate with the Government via official documents such as certificate
of corporation. The Government is kept happy by International Committee of The
Red Cross as long as International Committee of The Red Cross keeps the
official documentation and they operate legally. International Committee of The
Red Cross should keep the Government happy as if the Government aren’t
satisfied with how International Committee of The Red Cross runs, they can shut
International Committee of The Red Cross down.

Overall, I think the customers are the stakeholders who will
have the biggest impact on the business because their demand keeps the business
running and if they don’t demand the firms’ goods/services then the firm will
no longer be able to operate and will have to shut down. Effective
communication with customers’ means that customers know what the business sells
and at what prices, leading to the customer choosing to buy from one firm over
another competitor. 

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